Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Audit Financials topic
No spam. Unsubscribe anytime.
Independent auditors issue unmodified opinion on FY25 financial statements; one internal control finding noted
Summary
Auditors reported an unmodified opinion on the district's FY25 financial statements and single audit, highlighted a recurring internal-control finding (lack of segregation of duties), and reviewed enrollment declines, a $100,000 actual surplus versus a projected $935,000 spend-down, and fund balance levels below state averages.
Joseph Welch introduced himself and presented the FY25 independent auditors' report. He said auditors "issued another unmodified opinion on the financial statements," which indicates the statements were presented fairly in all material respects. He also reported an internal-control finding that the district has had previously: a lack of segregation of accounting duties.
Welch summarized the single-audit results for federal programs after the district exceeded the $750,000 federal expenditure threshold; the single audit also received an unmodified opinion and showed no internal-control findings on the audited program. He told the board there were no instances of noncompliance identified in the Minnesota legal compliance testing performed by the auditor's office.
On financial trends, Welch said average daily membership (ADM) has decreased by about 39 ADMs (roughly 2%) over five years and by about 61 units (approximately 3%) year‑over‑year; people-unit weighting moderated prior losses but not in the current year. He noted the district's 2025 general fund per-pupil expenditures were about $14,065 compared with a state average of about $17,100.
Welch said the district budgeted for a $935,000 general fund spend-down but actual results were a $100,000 surplus, attributable mainly to higher other local/county revenues (donations, interest) and higher special-education and general-education aid than budgeted. He also said the unrestricted fund-balance proportion decreased from about 9% to 7.7% and that typical district averages are in the low 20s percent range; he recommended modest, sustainable annual increases to rebuild reserves.
Board members asked about reasonable annual increases for unrestricted fund balance; Welch recommended a few percentage points per year rather than aggressive one-time increases. The presentation closed with the auditor thanking district staff and administrators for their cooperation.
